The Effects of Colleges and Universities on Local Labor Markets

Patricia Beeson and Edward B Montgomery

The Review of Economics and Statistics, 1993, vol. 75, issue 4, 753-61

Abstract: There is little systematic evidence documenting a relationship between colleges and universities and local economies. Using Census data for 218 SMSAs, this paper examines the relationship between various measures of university quality and local labor market conditions. The authors find that area employment growth rates and the percentage of the work force employed as scientists and engineers are positively and significantly related to measures of university quality. However, the data can not reject the hypothesis that university quality has no significant effect on area income, the employment rate, net migration rates, or even the share of employment in high-tech industries. Copyright 1993 by MIT Press.

Date: 1993
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